Waste Connections, Inc. (NYSE:WCN) insiders sold US$3.6m worth of stock, possibly signalling a downtrend
Many Waste Connections, Inc. (NYSE:WCN) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Waste Connections
Waste Connections Insider Transactions Over The Last Year
The Chief Tax Officer & Senior VP, Matthew Black, made the biggest insider sale in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$138 each. So what is clear is that an insider saw fit to sell at around the current price of US$133. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last twelve months insiders purchased 196.37 shares for US$26k. But they sold 25.57k shares for US$3.6m. In total, Waste Connections insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Are Waste Connections Insiders Buying Or Selling?
There was only a small bit of insider buying, worth US$4.0k, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.
Does Waste Connections Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Waste Connections insiders own about US$96m worth of shares. That equates to 0.3% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Waste Connections Insiders?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. Still, the insider transactions at Waste Connections in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for Waste Connections you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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